subject: Debt Settlement News - Why This Market Is Producing Favorable Debt Settlement Conditions [print this page] Why have credit card issuers become so generous? The answer lies in the current economic condition. Surprised? What do the economy and its condition have to do with personal debt relief?
Well, had it not been for the global recession and the consequent problems, credit card issuers and other unsecured lenders would never have agreed for a settlement transaction in the first place. Why?
Well, a settlement transaction is a loss making one for creditors. They need sufficient justification for undergoing such a loss. The fact that many borrowers had opted for bankruptcy was not sufficient justification. The credit card issuers are in the business for earning a profit and they do not care whether they force people into bankruptcy or not.
The economic crisis significantly exacerbated the problems. The extent of problem became so heavy that the credit card issuers themselves were at the risk of bankruptcy. This was the primary reason why debt settlement became very popular. It was not just a question of a large number of bankruptcies.
The recession also led to a significant reduction in the total demand for goods and services. Further, the political problems that the large number of bankruptcies created, lead to pressure on the credit card issuers. It would not be incorrect to say that the card act is a direct result of this political pressure.
Considering all this, the creditors themselves realized that providing favorable debt relief solutions was a smarter solution. Rather than pushing more and more people towards bankruptcies, it was understood that recovering 40% to 50% of the debt owed over a period of 24-36 months was a better deal.
This generosity of the credit card issuer is encouraged the government to help them out by offering the debt settlement deal. Which deal are we talking about? The stimulus package of course.
A lot of money has been pumped into the economy by the government. Bulk of the money has been passed on to the unsecured lenders. Debt relief professionals have taken note of this fact and are focusing on getting the best debt relief for customers..
Do you think the government would have offered the stimulus package if the creditors were hell bent on pushing a large number of people towards bankruptcy? Certainly not. That would have been the politically disastrous move.
Hence, the combination of the crisis, the bankruptcies and the government pressure has lead to a large number of debt relief options in the economy today.
If you are one of the millions of Americans who has over $10,000 in unsecured debt, it is time you found out about the debt settlement options available to you. Due to the current economy an overwhelming amount of people are in debt, creditors are having no choice but to agree to debt settlement deals. To get free debt help click the following link: Free Debt Help
